Trends in ICT standards: The relationship between European standardisation bodies and standards consortia

Theoretical analyses have dealt with the relationship between standardisation activities in formal standardisation bodies and in standards consortia. However, the empirical evidence is rather weak. Besides various case studies, there is no broad and quantitative approach for examining the relationship between formal and informal standardisation processes. This paper quantifies the standardisation activities in information and communication technology (ICT) of formal and informal standardisation bodies by utilising the database PERINORM containing formal standards and by analysing two CEN/ISSS surveys of standardisation consortia in 2000 and 2004. The two major insights gained are that the technical content of activities of formal and informal standardisation bodies is complementary rather than substitutive, which means most technical issues are addressed by both formal standardisation bodies and standardisation consortia. In addition, there has been a consolidation of consortia activities through a significant reduction in the number of consortia. However, this reduction has not changed the distribution of consortia activities by technical fields and complementary relations with the activities of formal standardisation bodies. Based on these new insights, some challenges emerge both for future theoretical analysis of decisions on standardisation types and for ICT policy regarding the interaction between standardisation and technical regulation and the role of standards in public procurement.     

Impact of wireless telecommunications standards and regulation on the evolution of wireless technologies and services over Internet protocol

Beginning with the historical role and importance of multi-physical standards in wireless telecommunications for the future in the US, Japan and Europe, this paper provides a cohesive vision of how wireless communication, voice over Internet protocol (VoIP) is likely to develop. Also covered in this paper are its benefits, the technical and regulatory support required to realize this vision and an assessment of its potential impact on the structure of the telecommunications industry. Although the competitive structure of the Internet is relatively open, several factors, such as frequency allocation policy and radio interface standards, could block the efficient evolution of wireless services to an IP platform. The paper proposes two major technical requirements to enable effective competition in wireless VoIP and achieve greater technical productivity.     

Strategy and strategic choice: The case of telecommunications

This paper outlines a model of organizational strategy that takes into account both the task ambiguity and concentration of the environment. A competitive strategy, in the sense as used in classical economics, is most suitable with low task ambiguity and concentration. When task ambiguity increases a shift to an innovative strategy can be expected. When concentration is high consolidative and cooperative strategies with respectively low and high ambiguity can be expected. These latter two strategies, in particular, tend to impose institutional and regulatory constraints upon firms, an aspect that is seriously neglected in the conventional business policy and strategic management literature. This model is illustrated using the case of the British telecommunications industry which has recently been subject to considerable regulatory and technical change. Implications for management are that strategy should be matched to environmental conditions as defined by task ambiguity and concentration. However, these dimensions are not fixed but enacted by firms in a particular industry. Implications for government are that a more contingent approach to regulation and de-regulation needs to be considered.     

Competition and social objectives: The case of West German telecommunications

This article discusses the problems which arise if liberalization in telecommunications has to be brought about under strong equity constraints. It is shown that, under West Germany's political framework, the average consumer exerts a much larger influence on telecommunications policy than in, for example, the USa. Distributional concerns therefore play a major role in German telecommunications policy. A strategy is presented which satisfies these equity constraints. The main elements are: (a) to keep the monopoly on the network level; (b) to allow service competition; but (c) only under a regime of ‘harmonized tarrifs’.     

Innovating through alliances: expectations and limitations

Abstract
In this paper we have analysed the innovation processes occurring in several cross-industry technology partnerships in order to suggest some key managerial issues pertaining to the effectiveness of these increasingly popular initiatives. Our general proposition, based on an extensive literature review and clinical research, is that the managerial hurdles in partnerships frequently offset, and in some cases eliminate, the expected innovation advantages. We submit that there is a fundamental tension between the dynamics of innovation and the logic of partnering. The extent of the tension, however, depends on the nature of the innovation project and on the characteristics of the partnership. Thus we recommend that managers involved in the formation of joint-R&D agreements should carry out an innovation-partnering assessment to design an appropriate management structure that would minimise the 'tension'. Lastly, we suggest some ingredients for carrying out such an assessment, and directions for further research.
Alliances seem to be today's answer to most management challenges. As recent surveys show, companies all over the world are forming partnerships to alleviate difficulties met in nearly every business activity —design, manufacturing, distribution, service… (e.g. Hergert & Morris, 1987; Urban, 1989), The popularity of such strategic initiatives in the 1980's has led to a dramatic increase in the number as well as in the forms of alliances (Hagedoorn and Schakenraad, 1990).     

Determinants of customer loyalty in the wireless telecommunications industry

This paper reports the results of research investigating the determinants of the propensity to switch wireless service providers. A model generated from the data rather than from a priori theory is presented, and it is found to uphold the strong relationship between customer satisfaction and customer loyalty exhibited in prior studies. In sharp contrast to the prevailing industry practice of ‘locking in’ customers by means of restrictive contracts, this research suggests that wireless service providers are better off improving customer satisfaction in order to minimize customer defection. This would imply shifting scarce resources to customer retention through improved service, saving costs of expensive customer acquisition campaigns. The paper also proposes two methodological innovations. First, the research employs the ‘Tetrad methodology’ as an exploratory technique prior to building a Structural Equation Model (SEM) making it possible to identify drivers of loyalty—direct or indirect—when it might not be known a priori what these drivers might be. Secondly, the paper proposes an approach to estimating moderator effects on the relationship between satisfaction and customer loyalty.     

Regulation and efficiency in transition: The case of telecommunications in Italy

In regulating the telecommunications industry, the separation between network and retail functions, which is designed to countervail the market power of incumbent operators, is a relevant issue. Despite its importance, little empirical research has addressed the effects of such a separation. Accordingly, this paper provides insights into the consequences of the Italian communications regulatory authority's (AgCom) decision to impose this type of separation on the incumbent telecommunications operator, Telecom Italia. In particular, the studied separation is between the firm's network-related functions, and those used for provision of its communication services. The present research finds that the type of separation implemented by AgCom allows a provider to maintain the advantages of operational scale in its network structure without dampening competition in the existing market for communications services. The study also offers further empirical evidence on the advantages of a composite vs. translog function in analyzing the multiproduct cost structure of a telecommunications operator.     

The impact of trade liberalization in telecommunications services: The case of APEC countries

This paper examines the impact of liberalizing the telecommunications services sector on investment and output in the Asia-Pacific Economic Cooperation (APEC) countries by estimating a system of four structural equations that takes into account the causal relationship between national income and telecommunications infrastructure. The degree of openness to trade in telecommunications is represented by a carefully constructed index that reflects a country’s trade and investment policy in terms of market access, national treatment and regulatory principles. One interesting finding from the empirical analysis is that the effects of trade liberalization depend on the risk rating of a country. In countries with relatively high risk ratings liberalization reduces investment in telecommunications.     

Estimating consumer surplus in the mobile telecommunications market: The case of Korea

This paper estimates consumer surplus in the Korean mobile telephone services (MTS) market. The Korean mobile telecommunications market has grown rapidly since 1997 when competition was introduced and Code Division Multiple Access (CDMA) technology was commercialized. Because consumer surplus is relevant to the controversy over establishing an appropriate price level between consumers and service providers, the need for a robust measurement of benefit from MTS is increasing. The measured net consumer surplus estimated by means of elasticities of demand reached about US$48.8 billion in the period 1996–2004 and the changes amounted to about US$8.8 billion during the same period. In particular, after competition was introduced into the market with an accompanying price decrease and increase in the number of subscribers, consumers have benefited greatly. Therefore, it can be inferred that a facility-based competition policy and the reduction in price of access such as handset subsidies all played a positive role in the early diffusion of MTS in Korea. The estimated consumer surplus in this paper does not include network externality (option externality); if this were considered, the total social welfare of the consumer would be larger.     

The African telecommunications union: A Pan-African approach to telecommunications reform

This article examines the organisational structure and strategic plans of the African Telecommunications Union (ATU). Although the ATU has been restructured to include private telecommunications entities as associate members, it remains essentially an inter-governmental agency. The article assesses the benefits of a regional approach to telecommunications reform and proposes that regional economic organisations replace the nation states as members of the ATU. Although the goals of the ATU, as articulated in its strategic plans are laudable, clearly defined benchmarks and specific strategies to achieve them are needed to make the organisation more effective.     

Estimating scale economies of the wireless telecommunications industry using EVA data

This paper proposes a new estimation method of total cost and average cost curves and applies it to the telecommunications industry. The method is more flexible and entails less hassle for data collection than traditional methods. The results show that the long-run average cost (LRAC) curve is downward sloping, revealing the presence of economies of scale in production. The two largest Korean mobile network operators are realizing full economies of scale, while the smallest operator is not. Finally, the paper recommends three policy alternatives that the Ministry of Information and Communication of Korea can draw on to increase efficiency in the Korean mobile telecommunications market.     

Women of influence: A case study of three telecommunications policymakers

With some notable exceptions, the scholarly literature in communications policy mostly reflects the accomplishments of men. “Women of Influence” expands this literature by profiling the experiences and contributions of three women: Cardiss Collins, the first African American Congresswoman from Illinois; Patricia Diaz Dennis, one of the first Hispanic FCC Commissioners; and Janice Obuchowski, the first woman appointed Assistant Secretary of Commerce for Communications and Information. Their policy work affected various issues from creating opportunities for minorities in broadcasting to helping countries privatize formerly government-owned media. Their experiences demonstrate the importance of including women and minorities in the policymaking process.     

Sequencing in telecommunications reform: A review of the Turkish case

This paper reviews the Turkish case of telecommunications reform with reference to the evidence from the sequencing literature. Turkey’s progress is in line with the proper sequencing of reform suggested by the literature. Accordingly, Turkey has pursued a gradualist approach by restructuring its public utility, the Posts, Telegraph and Telephone Company, and creating Turk Telecom in 1994; establishing the sector regulator, the Turkish Telecommunications Authority, in 2000; and liberalising the sector in 2003 before selling 55% of Turk Telecom to Oger Telecom, a private company, in 2005. Although the proper sequencing of reform was implemented, the Turkish telecommunications sector has not been functioning satisfactorily as yet, as indicated in the recent progress report of the European Union about Turkey’s accession and as revealed by the performance indicators analysed in this paper. The prevailing information, incentive and commitment problems require a close cooperation by the government with the regulators so as to ensure and reinforce the autonomy of the Telecommunications Authority and to establish a more transparent decision-making process.     

Does smallness affect the liberalisation of telecommunications? The case of Cyprus

A review of the literature on small economies and on telecommunications policy suggests that policy makers disregard the possible effects of the size of the economy on liberalisation outcomes. This paper builds on the literature on small economies to classify economy size according to economic, demographic, and geographical measures in order to empirically examine whether small size affects the effective culmination of liberalisation of telecommunications. A cluster of small economies that have a maximum population of 9.2 million (Guinea), GDP of US $86.17 billion (Singapore), and arable area of 19.3 thousand km² (Central African Republic) are the main focus of analysis. In particular, the paper capitalises on an in-depth analysis of the liberalisation of telecommunications in Cyprus and an econometric analysis of the respective European experience. The country-specific outcomes of liberalisation in Cyprus are consistent with the general tendency in small European economies and jointly provide strong evidence that smallness affects the success of liberalisation. The paper concludes with an array of policy suggestions for small economies.     

The financing of telecommunications infrastructure

This article discusses the financing of telecommunications infrastructure in Eastern and Central Europe and the republics of the former USSR, and highlights the role and activities of the European Bank for Reconstruction and Development in this sector.     

The proceduralization of telecommunications law

The trend towards ever more technical regulatory regimes associated with the reform of telecommunicaitons provision and regulation in the industrialised countries appears to be reversing itself, as changes across a number of jurisdictions occur which may be loosely characterized as a process of proceduralization. These changes have three facets: a shift towards more general regulatory norms; greater emphasis on procedural, as opposed to substantive, regulatory rules; and greater reliance on regulatory institutions of a general rather than sector-specific character. Explanations are offered not simply by reference to the external pressures, but also the adapation of the legal system itself.     

Services innovation and the transformation of work: the case of UK telecommunications

Current transformations in technologies and industrial structure of UK telecommunications have important implications for skills and work organisation. This is examined in different divisions of a large UK telecommunications firm: call centres, customer service centres, engineering sectors and the R&D department. The effect of these transformations on the development of firm competences is discussed.